Balancing Advantages and Risks: Cyber Risks in Autonomous Vehicles

1. “An Approach to the Social, Functional and Ethical Dimension of the Cyber Risks, with a Special Focus on Autonomous Vehicles” ANDREA SIGNORINO BARBAT Secretary General AIDA World University of Montevideo, Uruguay AIDA EUROPE CONGRESS LISBON 3 & 4 OCTOBER 2019

2. New technologies: TO BE OR NOT TO BE ….find balance betweenADVANTAGES AND RISKS….

3. Goals • It does not purport to be a traditional approach referred to new technologies in the sense of introducing technologies applied to insurances and risks thereof, or comment about virtues and flaws thereof, or explain the types of existing Cyber risks. • It intends to bring the subject closer to the audience and reflect about Cyber risks in a broad sense, reach and prevention thereof. • We will focus on AUTONOMOUS MOTOR VEHICLES…

4. General approachWhat does cybernetic mean? • As a cybernetic we design everything related to interdisciplinary computing technology used to extend human capacities. • The word cybernetic comes from thegreekkybernetes, which means “the art of steering a ship”. Subsequently, it was used by Plato in his work The Republic in order to refer to the “the art of ruling men” or the “art of governing”.

5. What does cybernetic mean? • The modern concept of cybernetic, computing technology based on human communication,was coined by Norbert Wiener (1894-1964) in his work Cybernetics: or Control and Communication in the Animal and the Machine. • Stafford Beer, philosopher of the organizational and management theory, defines cybernetic as “the science of effective organization”. • Cybernetics studies information flows around a system, and how that information is used by the system as a value that allows the system to control itself: it happens indifferently for both animate and inanimate systems.

6. Our own general approach • Analyze these Cyber risks in: • Its social dimension: risks implied by the technologies and cybernetic world to theconsumer-user in a social structure context, possible causes and solutions. • Its functionaldimension: risks for the actual company. • Its ethical dimension: referred to the dangers the Cyber world may cause to people individually, as human beings, if the risks implied are notproperly handled, regulated or contextualized. • GOING IN DEPTH EXCEEDS TODAY’S EXPOSITION SCOPE… BUT IF A GENERAL APPROACH IS NEEDED… we will USE THE CASE OF AUTONOMOUS VEHICLES

7. CYBER RISKS • Cyber Risks: risks that lurk in Cyber space. • Way beyond a hacker’s action… illegal computing activities to extract, alter, modify, handle, render useless or destroy information or assets, from affected companies or users, using electronic means and electronic devices for such purposes. • Scope: • Internal risk: generated or suffered by the actual person or company, • External risk or regarding third parties: liability generated upon third-party users or related to the systems.

8. CYBER RISKS • In this context we talk about computer fraud: one of the most modern challenges for the protection of individuals and companies from organized and occasional criminals. • Fraud: data theft – identity theft – social network account theft – cyber extortion and terrorism – corporate espionage – data handing vulnerability. • Cyber attacks usually attempt to data flow, precluding communication between issuer and receiver, intercepting, modifying or inventing data that alters the usual information flow.

9. CYBER RISKS • No activity is safe from these risks… neither are AUTONOMOUS VEHICLES • We are living in the new technologies era, the so-called “tech” world (Fintech, Insurtech, etc), the “fourth revolution”, the application of new technologies opens up a whole world, unexpected years ago, of new ways of conducting and making business. • This goes from technification of the entire activity operation of the manufacturing company to conduction, autonomous handlingusing blockchain, smart contracts, Internet of things, algorithms technology and others based on artificial intelligence. • BUT OF COURSE… IT ALSO OPENS UP THE DOOR TO CYBER RISKS.

10. Cyber risks and SOCIAL DIMENSION THEREOF WARNING! MANY OF THE RISKS COME FROM USERS THEMSELVES… • There is a considerable lack of awareness about whether the Internet is safe or not. This confusion among consumers complicates the fight against cybercrime. • User support in “technology” education and risks thereof is quite dissimilar in different countries, which results in a greater or lesser aversion towards Cyber risks…sometimes prevention is the only thing that can save us from a cyber attack!

11. Cyber risks and social dimension thereof • DISSIMILAR CONCERN ABOUT CYBER CRIME… • A recent report from Affion Group, a landmark in this type of investigations, shows thatBrazil, with 87 %, and USA, with 75 %, present the highest levels of concern. • In Europe, France, Spain, Italy and the United Kingdom present levels of concern raging from 60 % to 70 %. • However, Nordic countries have relatively lower levels of concern where only 40 % of the survey respondents in Sweden and 42 % in Finland claim to be concerned about cyber crime.

12. Cyber risks and social dimension thereof.THE CASE OF AUTONOMOUS VEHICLES • Self-driving cars are in the middle of developing all technologies that will make automated driving possible, from vision systems necessary to recognize the surroundings to control and processing systems and active and passive security which will guarantee the passengers’ integrity, in case of any eventuality. • FURTHERMORE, ONE OF THE MAIN CONCERNS OF MANUFACTURERS AND DEVELOPERS IS CYBER SECURITY. • Self-driving cars are, above all, connected cars. They would be unviable if not for technologies that enable interconnection between different systems, and communication with all types of external systems: from weather and traffic radars, or even Smart Cities infrastructures in the immediate future.

13. Cyber risks and social dimension thereof.THE CASE OF AUTONOMOUS VEHICLES • THIS CAPACITY TO CONNECT WITH OTHER SYSTEMS OPENS UP THE DOORS TO CYBER ATTACKS OF ANY TYPE. • We can think of attackers trying to take control of the vehicle or the locks, for instance; we can think of attackers trying to access our location or daily moves data . • Another possibility is using autonomous vehicles as “soldiers” of a gigantic botnet. • DoS and DDoS attacks are fairly known by their visible effects on online services users. Basically, the consequences of aDoS or DDoS attack are service disqualification or, in other words, they are attacks carried out against a network or system of computers which causes resources to be no longer available for lawful users. • ACTUALLY, THE POSSIBILITIES ARE INFINITE. • THEY ONLY DEPEND ON THE CREATIVITY, KNOWLEDGE AND TOOLS OF THE CRIMINALS.

14. Cyber risks and social dimension thereof.THE CASE OF AUTONOMOUS VEHICLES • Therefore, STRENGTHENING SELF-DRIVING CARS CYBER SECURITY IS CRUCIAL. Furthermore, new data protection laws, such as GDPR, must be complied with. • THE MAIN RISKS FACED BY THE SELF-DRIVING CARS INDUSTRY AS REGARDS CYBER SECURITY ARE: • Risk of a third party controlling the car or the infrastructure of its surroundings. This is serious not only because it means an attacker may control the vehicle, but also because it may affect traffic lights, for example, in level crossings or in any other near infrastructure, causing problems from simple troubles to collisions or accidents. • Risk of an attacker accessing personal information of the passengers in the vehicle. We talked about identity theft, for example, from biometric data used to lock and unlock vehicles through facial recognition software, which may be hacked and used for other applications. Thus, an attacker may log in the bank system or access your place of residence through the front door of your house.

15. Cyber risks and social dimension thereof.THE CASE OF AUTONOMOUS VEHICLES • Develop tools and mechanisms which preserve privacy and guarantee data security is necessary to fight cyber crime. • Furthermore, automated systems in every communication layer of connected cars and its ecosystem must be secured. • Internal communications between actual vehicles systems and unlock systems and sensors thereof, as well as data exchange with the control system, infrastructure or cloud platforms enabling new services to vehicles are critical.

16. Cyber risks and FUNCTIONAL DIMENSION thereof.THE CASE OF AUTONOMOUS VEHICLES • Risks for manufacturing company: LIABILITY TO CUSTOMERS, REPUTATIONAL OR IMAGE RISKS • MANAGING TECHNOLOGY RISKS MUST BE CONSIDERED CENTRAL IN THE BUSINESS OF VEHICLE AND SOFTWARE MANUFACTURE

17. Cyber risks and functional dimension thereof.THE CASE OF AUTONOMOUS VEHICLES WITH HIGHER AUTOMATION AND THE INTRODUCTION OF AUTONOMOUS VEHICLES, THE GOAL IS TO REDUCE THE LEVEL OF RISKS AND CIVIL LIABILITY… BUT AT THE SAME TIME, THIS PRESENTS PREVIOUSLY UNQUANTIFIED (NOR GUARANTEED) RISKS… Human error is the most common cause of car accidents or loss. So… eliminating humans changes risk perspective? IF THE RISK IS CYBERNETIC, IT SEEMS THAT DISPENSE WITH HUMANS IS NOT THE SOLUTION….

18. Cyber risks and functional dimension thereof.THE CASE OF AUTONOMOUS VEHICLES • TO REFLECT UPON: • Is artificial intelligence responsible for the risks? • If there is a COLLISION between a car driven by a human and a self-driving car, is the self-driving car responsibility presumed? • How is a possible responsibility of the interested parties determined? • As regards the manufacturer liability (due to collision, injuries, transport, etc.), is the software owner or designer liable or the user?

19. A quick look over Cyber risks and ETHICAL DIMENSION thereof • RISKS FOR THE HUMAN BEING, IN ITS PERSONAL AND ETHICAL DIMENSION Article from the Real Instituto El Cano VIRTUES OF AI… • In the cyber security field, AI (Artificial Intelligence) brings important improvements by the analysis of algorithms applied to a large amount of information, inferring results based on the context and learning acquired from previous situations.

20. Cyber risks and ethical dimension thereof • Risks for the human being, in its personal and ethical dimension PROBLEMS OF AI… • AI capacities, algorithms thereof, may be similarly applied –by those who provoke insecurity in advanced societies, and those who protect them as well. • Direct confrontation between AI algorithms and rise thereofmay lead to a point where human intervention is pushed into the background. • AN ETHICAL DEBATE ABOUT THE SCOPE AND RELIABILITY OF AI IS NECESSARY…

21. Cyber risks and ethical dimension thereof • PROBLEMS OF AI… • In spite of the unanimity about the need for international laws, it seems particularly complicated to set them. • Allow market forces to establish the game rules would lead to the vulnerability of fundamental rights, of individuals and nations security, similar to the one currently experienced in privacy matters. THIS COMES CLOSE TO THE POTENTIAL IMPACT OF AI, FOR THE PURPOSES OF THE MALICIOUS USE OF AI AND THE NEED FOR CONTROLS AND COUNTERMEASURES THAT LACK A GLOBAL REGULATORY FRAMEWORK.

22. Cyber risks and ethical dimension thereof. THE CASE OF AUTONOMOUS VEHICLES • WHO SHOULD DIE IN A CRASH? • If forced to choose, who should a self-driving car kill in an unavoidable crash? • Should the passengers in the vehicle be sacrificed to save pedestrians? Or should a pedestrian be killed to save a family of four in the vehicle? • To get closer to an answer - if that were ever possible - researchers from the MIT Media Lab have analysed more than 40 million responses to an experiment they launched in 2014. • Their Moral Machine has revealed how attitudes differ across the world.

23. Cyber risks and ethical dimension thereof. THE CASE OF AUTONOMOUS VEHICLES • HOW DID THE EXPERIMENT WORK? Weighing up whom a self-driving car should kill is a modern twist on an old ethical dilemma known as the trolley problem. The idea was explored in an episode of the NBC series The Good Place, in which ethics professor Chidi is put in control of a runaway tram. If he takes no action, the tram will run over five engineers working on the tracks ahead. If he diverts the tram on to a different track he will save the five engineers, but the tram will hit one other engineer who would otherwise have survived. The Moral Machine presented several variations of this dilemma involving a self-driving car….

24. Cyber risks and ethical dimension thereof. THE CASE OF AUTONOMOUS VEHICLES • People were presented with several scenarios. • Should a self-driving car sacrifice its passengers or swerve to hit: • a successful business person? • a known criminal? • a group of elderly people? • a herd of cows? • pedestrians who were crossing the road when they were told to wait? • Four years after launching the experiment, the researchers have published an analysis of the data in Nature magazine.

25. Cyber risks and ethical dimension thereof. THE CASE OF AUTONOMOUS VEHICLES • WHAT DID THEY FIND? • The results from 40 million decisions suggested people preferred to save humans rather than animals, spare as many lives as possible, and tended to save young over elderly people. • There were also smaller trends of saving females over males, saving those of higher status over poorer people, and saving pedestrians rather than passengers. • The researchers did find some cultural differences in the decisions people made. EX: People in France were most likely to weigh up the number of people who would be killed, while those in Japan placed the least emphasis on this.

26. Cyber risks and ethical dimension thereof. THE CASE OF AUTONOMOUS VEHICLES • CONCLUSIONS • "Never in the history of humanity have we allowed a machine to autonomously decide who should live and who should die, in a fraction of a second, without real-time supervision. We are going to cross that bridge any time now," the team said in its analysis. • "Before we allow our cars to make ethical decisions, we need to have a global conversation to express our preferences to the companies that will design moral algorithms, and to the policymakers that will regulate them.“ • Germany has already introduced a law that states driverless cars must avoid injury or death at all cost. • The law says algorithms must never decide what to do based on the age, gender or health of the passengers or pedestrians

27. Cyber risks and ethical dimension thereof • RESPONSE TO PROBLEMS… • UE April of 2019 “Communication from the Commission to the Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions” about “BUILDING TRUST IN HUMAN-CENTRIC ARTIFICIAL INTELLIGENCE”. • AI can transform our world to the better: • improve health assistance, • reduce energy consumption, • make vehicles safer, • help farmers to use water and resources more efficiently, • forecast climate and environmental change, • improve financial risk management, • help to detect fraud and cyber security threats, • enable agencies in charge of enforcing the law to fight crime more efficiently…………………… IT IS A STRATEGIC TECHNOLOGY!

28. Cyber risks and ethical dimension thereof • NEVERTHELESS, IT IMPLIES NEW CHALLENGES FOR THE FUTURE OF WORK AND POSES LEGAL AND ETHICAL MATTERS… • SOLUTION: put HUMANS IN THE CENTER OF AI DEVELOPMENT —center AI in the human being. • AI IS NOT AN END IN ITSELF, BUT A MEAN WHICH MUST SERVE INDIVIDUALS WITH THE FINAL PURPOSE OF INCREASING THEIR WELL-BEING.

29. Cyber risks and ethical dimension thereof • TO THIS EFFECT, RELIABILITY –CONFIDENCE– ON AI MUST BE GUARANTEED. • THE VALUES on which our societies are based must be fully integrated with the evolution of AI. RESPECT LATIN-AMERICAN COMMON VALUES. • Respect forhuman dignity, • Freedom, democracy, equality, • Rule of Law, • Respect forhuman rights, including minority rights, • Pluralism, non-discrimination, tolerance, • Justice, solidarity • RESPECT FOR FUNDAMENTAL RIGHTS, INDIVIDUAL, CIVIL, POLITICAL, ECONOMIC AND SOCIAL RIGHTS THAT ARE THE FOUNDATION OF OUR SOCIETIES

30. Cyber risks and ethical dimension thereof • In its report, the Commission supports 7 ESSENTIAL REQUIREMENTS FOR A RELIABLE AI for the purposes of creating a suitable environment of trust for the successful development and use of AI.  Human agency and oversight Technical robustness and safety Privacy and Data Governance Transparency Diversity, non-discrimination and fairness Societal and environmental well-being Accountability

31. Conclusions • Without a doubt, if the technological and cybernetic worlds did not exist, did not live among us, cyber risks would not exist, but how can we say no to the progress of so many positive aspects brought by said worlds? • COMMUNICATION, WELL-BEING, AGILITY, OPTIMIZATION OF BUSINESS PROCEEDINGS AND TIME… AND EVEN FEWER RISKS?

32. Conclusions • Once again, as in so many other aspects of life, BALANCE should be the key… • ACCOMPLISHING DUE BALANCE IN THE DESIGN, APPLICATION AND USE OF TECHNOLOGIES IS THE ONLY THING WHICH CAN PROVIDE PEACE TO THE HUMAN BEING AND THE ENTIRE SOCIETY, HIGHLIGHTING STRENGTHS AND NOT WEAKNESSES, WITHIN THE DRAMATIC VORTEX OF THE CYBERNETIC WORLD.

33. Thank you! asignorino@netgate.com.uy/andreasignorino@gmail/comwww.andreasignorino.com.uy “ONE MACHINE CAN DO THE WORK OF FIFTY ORDINARY MEN (OR WOMEN). NO MACHINE CAN DO THE WORK OF ONE EXTRAORDINARY MAN (OR WOMAN)” ElbertHubbard (writer, philosopher, artist, American 1915-1956)